I've seen many different kinds of MAs and Digital Filters. The problem with MAs is that they lag. And that there is a tradeoff between smoothness and lagging. Meaning that if you want your MA to be smooth you'll have a more lagging Indicator. And vise versa, if you want your MA to be very responsive then you'll loose the smoothness. To solve this problem, Digital Filters were introduced where they try to have smoothness and resposivity at the same time.
CodeBreaker has discussed this in a very high level thread. And also it's discussed very nicly by the ForexTSD guys.
Optimized Trend Trading By CodeBreaker
Trading Strategies Based On Digital Filters By NewDigital
In the following picture I've compared 4 different MAs.
Green ---> SMA 50
Violet ---> JMA 50
Blue ---> HMA 50
Yellow ---> NonagMA 50
I played with the FATL and SATL a little but I like the above MAs better.
refering to the picture you can see the difference that the digital filters have made in the responsivity of the MAs.
It seems like the NonLagMA is doing better. It's smooth, fast and acts very nicley where other MAs overshoot.
And also the JMA is doing very nicely too.
CodeBreaker has discussed this in a very high level thread. And also it's discussed very nicly by the ForexTSD guys.
Optimized Trend Trading By CodeBreaker
Trading Strategies Based On Digital Filters By NewDigital
In the following picture I've compared 4 different MAs.
Green ---> SMA 50
Violet ---> JMA 50
Blue ---> HMA 50
Yellow ---> NonagMA 50
I played with the FATL and SATL a little but I like the above MAs better.
refering to the picture you can see the difference that the digital filters have made in the responsivity of the MAs.
It seems like the NonLagMA is doing better. It's smooth, fast and acts very nicley where other MAs overshoot.
And also the JMA is doing very nicely too.